The credit manager at First National Bank has just received the income statement and balance sheet for New England Document Management, Inc. for the year ended December 31,2019(See Tables below). The bank requires the firm to report its earnings performance and financial position quarterly as a condition of a loan agreement. The bank's credit manager must prepare two key financial statements based on the information sent by NE Document Mgmt., Inc. This will be passed on to the commercial loan officer assigned to this account, so that he may review the financial conditions of the firm.

Income Statement2019

Sales Revenue$150,000

Cost of Goods Sold($117,500)

Gross Profits$32,500

Selling Expenses($4,500)

General and Admin. Expenses($4,000)

Depreciation Expense($4,000)

Operating Profits$20,000

Interest Expense($2,500)

Net Profit before Taxes$17,500

Taxes (40%)($7,000)

Net Profit after Taxes$10,500

Assets 2018 2019

Cash $21,000 $24,000

Accounts Receivable $39,000 $45,000

Inventory $27,000 $30,000

Current Assets $87,000 $99,000

Gross fixed Assets $40,000 $42,000

Acc. Depreciation $18,000 $22,000

Net fixed assets $22,000 $20,000

Total Assets $109,000 $119,000

Liabilities and Equity 2018 2019

Accounts Payable $30,000 $25,000

Notes Payable $40,000 $50,000

Accruals $2,000 $1,000

Current Liabilities $72,000 $76,000

Long-term Debt $8,000 $10,000

Common Stock at par $1,000 $1,000

Paid-in Capital in excess of par $4,000 $4,000

Retained Earnings $24,000 $28,000

Liabilities and Equity $109,000 $119,000

Organize a statement of cash flows for the year ended December 31, 2019, organized by cash flow from operating activities, cash flow from investment activities, and cash flow from financing activities.Verify that the sum of CFfrom Operations + CF from Investment + CF from Financing = Change in cash from 2018 to 2019. Please be as clear as possibleand show exact steps on how the answers were achieved